24
Acknowledged
Capita's public sector pension administration history includes ongoing legal challenges from unions
Conclusion
Capita administered some elements of the pension scheme before MyCSP took on full responsibility for Scheme administration in 2014.54 Capita is now due to take on that full administrative responsibility from December. Capita already administers the Royal Mail Statutory Pension Scheme on behalf of the Cabinet Office. Capita also administers the Teachers’ Pension Scheme on behalf of the Department for Education, however its contract is coming to an end after 27 years. The Teachers’ union, NASWUT, is currently bringing a legal action against the government due to delays in producing Cash Equivalent Transfer Values, frequently required in divorce proceedings and for retirement planning.55
Government Response Summary
The government acknowledges the committee's observations, providing an update on the contract awarded to Capita for scheme administration and the extended duration of their Teachers' Pension Scheme contract.
Government Response
Acknowledged
Government Response
Acknowledged
HM Government
Acknowledged
The Cabinet Office awarded the contract to administer the Scheme to Capita in November 2023, meaning that since December 2023 there has been a transition period in progress, with Capita expecting to take over administration of the Scheme in December 2025. The total value of the new contract is £239 million for seven years with an option to extend for a further three. This will be Capita’s second time administering parts of the Scheme, having run the pension payroll service and deferred member administration prior to 2014. Capita is also the administrator of the Teachers’ Pension Scheme, responsible for its public sector pension administration and dealing with Remedy. Capita was due to end that role in 2025, but that has now been extended to 2026.
Source
Committee
Public Accounts Committee
Inquiry
Civil service pensions
Report
49th Report - Administration of the Civil Service Pension Scheme
24 Oct 2025
HC 888
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.8 yr
Report published
24 Oct 2025